52. (1) A secured creditor in the liquidation proceedings may-
(a) relinquish its security interest to the liquidation estate and receive
proceeds from the sale of assets by the liquidator in the manner specified
in section 53; or
(b) realise its security interest in the manner specified in this section.
(2) Where the secured creditor realises security interest under clause (b)
of sub-section (1), he shall inform the liquidator of such security interest
and identify the asset subject to such security interest to be realised.
(3) Before any security interest is realised by the secured creditor under
this section, the liquidator shall verify such security interest and permit
the secured creditor to realise only such security interest, the existence
of which may be proved either-
(a) by the records of such security interest maintained by an information
utility; or
(b) by such other means as may be specified by the Board.
(4) A secured creditor may enforce, realise, settle, compromise or deal with
the secured assets in accordance with such law as applicable to the security
interest being realised and to the secured creditor and apply the proceeds
to recover the debts due to it.
(5) If in the course of realising a secured asset, any secured creditor
faces resistance from the corporate debtor or any person connected therewith
in taking possession of, selling or otherwise disposing off the security,
the secured creditor may make an application to the Adjudicating Authority
to facilitate the secured creditor to realise such security interest in
accordance with law for the time being in force.
(6) The Adjudicating Authority, on the receipt of an application from a
secured creditor under sub-section (5) may pass such order as may be
necessary to permit a secured creditor to realise security interest in
accordance with law for the time being in force.
(7) Where the enforcement of the security interest under sub-section (4)
yields an amount by way of proceeds which is in excess of the debts due to
the secured creditor, the secured creditor shall-
(a) account to the liquidator for such surplus; and
(b) tender to the liquidator any surplus funds received from the enforcement
of such secured assets.
(8) The amount of insolvency resolution process costs, due from secured
creditors who realise their security interests in the manner provided in
this section, shall be deducted from the proceeds of any realisation by such
secured creditors, and they shall transfer such amounts to the liquidator to
be included in the liquidation estate.
(9) Where the proceeds of the realisation of the secured assets are not
adequate to repay debts owed to the secured creditor, the unpaid debts of
such secured creditor shall be paid by the liquidator in the manner
specified in clause (e) of sub-section (1) of section 53.